(Kitco News) - Despite some selling pressure overnight, the gold market has managed to push to another key resistance point at $2,650 an ounce.
Gold’s recovery from last week’s significant selloff has prompted a growing chorus of analysts to assert that the precious metal’s rally is not over yet. At the start of the week, Goldman Sachs reiterated its forecast for gold prices to hit $3,000 an ounce, and they are not the only ones anticipating record highs in 2025.
“The current drop in gold is a correction, not a reason to revise forecasts,” said Julia Khandoshko, CEO of the European brokerage Mind Money, in an exclusive comment to Kitco News.
Khandoshko said it's only a matter of time before gold pushes back to last month’s all-time high of $2,800. She added that she expects gold prices to reach $3,000 an ounce in 2025.
“Despite the current short-term fluctuations, the long-term prospects for gold remain the same. The main factors driving gold's growth, such as geopolitical tensions, the strengthening role of the East, and global inflation, remain unchanged and continue to push the price of the metal,” she said. “These trends will not be altered by the outcome of the U.S. elections. Even if short-term euphoria arises in markets like cryptocurrency, it does not change the overall trends.”
Analysts have noted that although gold saw significant gains this year, many investors stayed on the sidelines. Western investor demand only started to pick up as the Federal Reserve prepared to embark on its current easing cycle.
However, Khandoshko said that gold’s recent correction has now provided investors with an opportunity to enter the market. She added that the selloff was just a natural part of the broader cycle.
“The overall upward trend in gold’s value will continue despite temporary market fluctuations. These fluctuations should not be overreacted to,” she said.
Gold’s selloff began after Americans decisively voted for Donald Trump to be the next U.S. president. Analysts note that Trump’s proposed “America First” policies have provided new momentum for U.S. bond yields and the dollar, creating two significant headwinds for the precious metal.
Khandoshko said she is not convinced that Trump’s policies will support the dollar through 2025.
“I don't expect major changes to result from Trump’s arrival. The Fed's stance and overall inflation expectations will likely remain stable. Trump may add volatility to the market, but this won't transform the broader economic tendencies. In fact, increased volatility is not necessarily bad for gold—in conditions of uncertainty, gold will remain an attractive asset,” she said.
